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JAN 2012
Urbis Outlook
A RESIDENTIAL MARKET AND ECONOMIC CONTEXT ON SOUTH BRISBANE
Research Update From Australia’s Leading Property Advisors
ii
CONTENTS
Quick Download 1
Suburb Insights 4
Future Vision of South Brisbane 5
Existing and Future Infrastructure 6
Inner South Commercial Market 7
South Brisbane Commercial Market 8
South Brisbane Precincts Map 9
South Brisbane Educational Institutions 10
South Brisbane Retail and Cultural District 11
Rental Market Insights 12
Demographic Insights 15
Shifting Demographic 16
Market Insights and Outlooks 17
Brisbane LGA Residential Market Overview 18
South Brisbane Catchment Residential Market Overview 19
Macro-economic Insight 21
© urbis.com.au
JAN 2012
Urbis Outlook
A RESIDENTIAL MARKET AND ECONOMIC CONTEXT ON SOUTH BRISBANE
Research Update From Australia’s Leading Property Advisors
1
Quick Download
South Brisbane rental premium
South Brisbane apartments generate a rental premium over comparable
products in the suburbs of West End, Fortitude Valley and Hamilton.
South Brisbane Rental Premiums On The Market Rental Prices
ONE BEDROOM AND TWO BEDROOM APARTMENTS
1-Bd 2-Bd
South Brisbane $504 $670
West End $422 $494
Fortitude Valley / Bowen Hills $360 $449
Hamilton $357 $494
South Brisbane Premium Over
West End 19% 36%
Fortitude Valley / Bowen Hills 40% 49%
Hamilton 41% 36%
• The sample of on market rental prices was calculated using standard properties
and removing properties which were considered premium. Premium properties • The sample of on market rental prices was calculated using standard properties and removing properties which were
could be removed on the basis of aspect, square metres and amenities. considered premium. Premium properties could be removed on the basis of aspect, square metres and amenities.
• Prepared by Urbis and sourced from Realestate.com.au • Prepared by Urbis and Sourced from Realestate.com.au
South Brisbane key facts
Established Commercial Office Precinct Lifestyle and Cultural Amenities
• 300,000 square metres of commercial office space, equating to • 275 bars, restaurants and cafes
space for 30,000 white collar workers Growth in total stock levels of • 53 fashion boutiques
12 per cent from 2004 to 2011
• 157 Speciality Stores
• Vacancy rate in South Brisbane of 4.3 per cent during the September
• Queensland Culture Centre including the Gallery of Modern Art and
2011 quarter compared to 7.4 per cent in the Brisbane CBD.... see
Queensland Museum.... see page 11 for further details
page 7 for further details
Surrounded by Educational Institutions Useable & Efficient Infrastructure
• 12 educational institutes with 80,000 students • There is currently $2.7 billion worth of existing infrastructure in
• Key development of Griffith University Conservatorium and of South South Brisbane, with a further $1.3 billion in the pipeline for future
Bank TAFE Education and Training Precincts.... see page 10 for development.
further details • Current useable infrastructure includes; Go Between Bridge, GOMA
and Brisbane Convention and Exhibition Centre.... see page 6 for
Proximity further details
• 450 metres from Brisbane’s Central Business District , with six
bridges linking South Brisbane to the CBD
• In addition South Brisbane residents have the option of train, bus and
ferry services that provide efficient public transport to the CBD and
surrounding nodes.... see page 9 for further details
© urbis.com.au
Urbis Outlook
A RESIDENTIAL MARKET AND ECONOMIC CONTEXT ON SOUTH BRISBANE
JAN 2012 2
Quick Download
Opportunities Shifting Demographic
South Brisbane is an inner city suburb that has
The most prevalent age demographic in
taken advantage of its proximity to the Brisbane
South Brisbane is residents aged 20 to
CBD and developed into the cultural and retail
29 years, equating to 34.1 per cent of the
hub of South East Queensland. Significant
total population in 2010. The same age
infrastructure has been invested into developing
demographic is equally as dominant in the
the Queensland Cultural Centre, Brisbane
catchment area and Inner Brisbane. South
Convention and Exhibition Centre and the Grey
Brisbane’s close proximity to Brisbane’s CBD,
and Little Stanley Street retail precincts.
key educational facilities and employment
In recent years, South Brisbane has registered nodes is appealing to Generation Y and X
substantial growth in commercial office demographics. In addition to the location,
space. South Brisbane’s close proximity to the South Brisbane has a wealth of existing
Brisbane CBD has enabled the development Infrastructure and Projects infrastructure including six bridges connecting
it to the CBD and a newly development transit
of its business district, with a number of large
South Brisbane’s $2.5 billion of existing network, which provides convenient access to
multinational firms residing in the suburb. South
infrastructure has caused the area to grow these key nodes.
Brisbane’s reputation was further enhanced
faster than any other inner city locality over the
with Suncorp Banking and Insurance and the
past 20 years. The suburbs rapid growth can In the near future, a greater focus will be
ABC recently deciding to relocate into South
be attributed to the diverse and concentrated needed to attract older Gen Ys who are now
Brisbane after exhaustive selection processes
investment from public and private entities, moving into young family dynamics and are
revealed the suburb’s amenities and location
which continue drive organisations to further more accustomed to denser communities but
met all criteria.
invest and take advantage of an established and are conscious of the value need to be derived
functioning framework. from their real estate investment
The supply of residential
development in South As the cultural, entertainment The focus therefore for
Brisbane has been limited and business capital of South investors and developers is
in recent years with the East Queensland, investors to be able to capitalise on the
global financial crisis and the are persistently devoting opportunities these shifting
subsequent lack of finance more capital funds for future trends present.
available, deferring a number infrastructure.
of developments.
One of the distinctive advantages of South
Brisbane is that the existing and future
The lack of supply has been contrasted by infrastructure is desirable and useable. Capital
high demand from individuals wanting to investment in infrastructure has been directed to
reside in South Brisbane, causing median sale uplift and benefit the prime cultural, educational
and rental prices to trade at a premium. With and retail nodes in the suburb. Large capital
supply scarce and demand for South Brisbane investments have redeveloped the South Bank
high there is an opportunity for new residential Southern Restaurant Precinct, Convention and
developments to capitalise on this imbalance. Exhibition Centre and South Bank Institute of
Technology. Further investment is still focused
on increasing public transport, with the future
development of a Mass Transit Centre and the
upgrade of the Busway’s throughout South
Brisbane.
© urbis.com.au
Urbis Outlook
A RESIDENTIAL MARKET AND ECONOMIC CONTEXT ON SOUTH BRISBANE
JAN 2012 3
Quick Download
Residential Market Insights Rental Market Insights
The South Brisbane rental market is
There is no disputing that 2011 has been a The median sale price for a house in the
undersupplied with the number of people
tough period for the Queensland property South Brisbane catchment was $606,000 for
wanting to reside in the suburb substantially
market and the Australian economy in general. the September 2011 half year based on 80
outweighing the available product currently on
However, it is certainly not all doom and gloom settled transactions. The median house price
the market.
for Australia’s property market moving forward. over the year has increased 2.7 per cent,
Particularly in Brisbane where we are moving into against the Brisbane trend, reflecting demand
one of the most opportunistic buying markets for residential property within the catchment.
Brisbane home buyers and investors have Looking at the catchments long term results, The demand for South
experience in many years. the region registered on average a 5.0 per cent
increase per annum over the past five years Brisbane coupled with this
while over the past 10 years the growth rate
was at 8.5 per cent.
limited supply has enabled
We are moving into one of South Brisbane rental prices
The South Brisbane Catchment registered a
the most opportunistic buying median apartment price of $484,250 based to trade at a premium over
markets Brisbane home on 100 settled transactions at the end of the
the surrounding suburbs.
September 2011half year.
buyers and investors have
experience in many years. One bedroom apartments in South Brisbane
The median apartment price register a rental premium over comparable
properties in West End, Fortitude Valley /
Despite media driven fear, taking a long-term over the past five years Bowen Hills and Hamilton. One bedroom
approach to Brisbane property it is reasonable
to predict we have reached the bottom of our
has on average increased apartments in South Brisbane attract a 19 per
cent premium over West End and 40 per cent
property cycle. Global economic uncertainty by 6.7 per cent per annum, premium over Fortitude Valley and Bowen Hills.
remains, but Australia and Queensland in
particular hold an enviable position of stable outperforming houses in the Comparable two bedroom apartments in
South Brisbane also generate a higher rental
economic fundamentals and a booming
resource sector. This stand-out performance
catchment and the greater premium. Two bedroom apartments in South
portrays Brisbane property as an exceptionally Brisbane residential market. Brisbane attract a premium of 36 per cent over
secure investment option internationally. West End and Hamilton and a significant 49 per
cent over Fortitude Valley / Bowen Hills.
© urbis.com.au
Urbis Outlook
A RESIDENTIAL MARKET AND ECONOMIC CONTEXT ON SOUTH BRISBANE
JAN 2012 4
South Brisbane – Suburb Insights
South Brisbane – the next Brisbane CBD
South Brisbane has quickly evolved provided a means of crossing the Brisbane The precincts recently underwent a $200
River and provided the residents of South million redevelopment and are now brimming
from an older inner city suburb into Brisbane with a direct link to the Brisbane CBD. with bars, restaurants and boutique retail
the South East Queensland’s most stores. The precincts have been further
significant cultural, educational and During the late 1980s South Brisbane began enhanced by the construction of a number
its development into the cultural capital of of large commercial office buildings which
commercial precinct. South East Queensland. The development of has expanded into Melbourne Street and the
the Queensland Cultural Centre was initiated surrounding area.
The suburb of South Brisbane is located less with the construction of the Queensland Art
than one kilometre from Brisbane’s Central Gallery in 1982. In recent years, the Cultural
Business District (CBD) and offers an idyllic Centre has been redeveloped and modernised
mix of medium and high rise residential
buildings, thriving commercial office space
and encompasses five separate facilities With a large volume of
including the Queensland Galley of Modern
and boutique retail precincts. South Brisbane Art. The reputation of South Brisbane as a planned infrastructure and
also contains a number of major educational cultural precinct was further enhanced by the
facilities and is home to Queensland’s largest development of the South Bank Parklands for commercial developments
cultural district. the World Expo in 1988. Today South Bank has
grown into Brisbane’s premier destination with
in the pipeline, South
South Brisbane is one of the oldest suburbs in
Brisbane with land sales first recorded during open parklands integrated with restaurant and
entertainment facilities.
Brisbane will continue
the 1840’s. The suburb’s prime location on
the banks of the Brisbane River proved a maturing into the next
shortcoming to its early residents as they were The growth of South Bank facilitated the
unable to find an efficient way to cross the development of Little Stanley Street and Grey Brisbane CBD.
river. The development Street, two premier retail precincts.
ASHGROVE of the Victoria Bridge
ASHGROVE
HERSTON BULIMBA
RED HILL Fortitude Valley / NEWSTEAD
Bowen Hills
HERSTON BULIMBA
RED HILL Fortitude Valley / NEWSTEAD
Bowen Hills
3km BALMORAL
BARDON SPRING HILL
PADDINGTON 3km BALMORAL
2km
BARDON SPRING HILL
PADDINGTON
2km
1km
BRISBANE CBD NEW FARM
MILTON
!
( 1km
BRISBANE CBD NEW FARM
TOOWONG
MILTON South Brisbane !
(
TOOWONG
South Brisbane
West End
West End NORMAN PARK
NORMAN PARK
TARINGA
TARINGA ST LUCIA COORPAROO
© 2011 PSMA Australia Ltd, Sensis Pty Ltd. Australia Bureau of Statistics. Produced by Urbis Pty Ltd ( December 2011 )
±
Scale 1:25,000 when printed at A3
0 0.125 0.25 0.5 0.75 1
ST LUCIA COORPAROO
Kilometres
© 2011 PSMA Australia Ltd, Sensis Pty Ltd. Australia Bureau of Statistics. Produced by Urbis Pty Ltd ( December 2011 )
SOUTH BRISBANE MAJOR NODES
±
Scale 1:25,000 when printed at A3
0 0.125 0.25 0.5 0.75 1
BRISBANE, QUEENSLAND
© urbis.com.au
Kilometres
Urbis Outlook
A RESIDENTIAL MARKET AND ECONOMIC CONTEXT ON SOUTH BRISBANE
5
South Brisbane Riverside Renewal Strategy
The future vision of South Brisbane
Kurilpa
The Kurilpa Precinct covers an area of approximately 36 hectares at the The Precinct is intended to be developed into a world class cultural
north western end of South Bank envisioned to be the Primary Activity district with a complementary mix of commercial, retail and community
Centre of South East Queensland. development.
Key Rejuvenation Strategies in the Kurilpa Precinct
• Mixed use development within the Precinct is envisioned to • Fish Lane will be developed into a vibrant active laneway reflecting
stimulate the retail boulevards of Melbourne Street and Montague the eclectic culture of South Brisbane.
Road. Streetscape upgrades will encourage movement and • The Paramalat land holdings on the bank of the Brisbane River
comfort by delivering unparalleled pedestrian and cyclist pathways, are planned as a mixed use development with an iconic building
providing access to the CBD via the numerous bridges that cross and landmark on the site serving as a historical reminder for South
the river. Brisbane. The development will open the waterfront to residents by
• Hope Street will become a premier destination for dining, providing pedestrian, cycling and retail options.
entertainment and retail amenities adding to the already abundant
options for South Brisbane residents.
sOUTH BRISBANE REACH Future development will be centred on unlocking the potential between the
South Brisbane Reach is the entertainment, cultural and educational South Brisbane Reach and surrounding precincts. The South Brisbane
capital of Brisbane. With a significant amount of development in the Reach contains four significant public transport nodes each bound by
South Brisbane Reach, the precinct will remain largely unchanged with an other precincts, with substantial latent development zones. By developing
emphasis on maintaining its renowned open spaces and amenities. inter-precinct public transport facilities these areas will be linked to the
public transport nodes of the South Brisbane Reach.
Source: South Brisbane Riverside Renewal Strategy – Final Draft July 2009
© urbis.com.au
Urbis Outlook
A RESIDENTIAL MARKET AND ECONOMIC CONTEXT ON SOUTH BRISBANE
JAN 2012 6
Existing and Future Infrastructure
$4B of useable and desired infrastructre
There is currently over $2.7 billion worth of existing infrastructure already in South
Brisbane, with a further $1.3 billion in the pipeline for future development.
South Brisbane Infrastructure Investment South Brisbane Infrastructure
Est. value Infrastructure Status value
Existing Infrastructure $2,721,580,000 State Library of Qld, Art Galley, Museum, Cultural Centre, Existing $850,000,000
Infrastruture Projects Underway $356,980,000 Convention and Exhibition Centre Existing $203,000,000
Go Between Bridge Existing $338,000,000
Planned Future Infrastruture $302,000,000
GOMA Existing $300,000,000
Possible Future Infrastruture $640,000,000
Busway Upgrade Existing $250,000,000
Total $4,020,560,000
South Bank Tafe Existing $325,000,000
• Sourced from Urbis and prepared by Urbis
Redevelopment of Southbank Southern Restaurant Precinct Existing $100,000,000
BCEC Extension Commenced $130,000,000
South Brisbane’s $2.5 billion of existing infrastructure has
enabled the region to grow faster than any other inner city Southbank Butterfly House Redevelopment Commenced $50,000,000
locality over the past 20 years. The suburbs rapid growth can Southbank Transit Centre Site Redevelopment Planned $250,000,000
be attributed to the diverse and concentrated investment from
Arts Precinct Extension Possible $225,000,000
public and private entities, which continue to drive further
investment. As the cultural, entertainment and business capital Future Mass Transit Possible $315,000,000
of South East Queensland, investors are devoting more capital QPAC Upgrade Possible $100,000,000
funds for future infrastructure.
• Sourced from Urbis and prepared by Urbis
SOUTH BRISBANE INFRASTRUCTURE
$4 BILLION
1 State library of Queensland, Art Gallery, Museum, 10 GOMA 21 Replacements QAS Training Facility
Cultural Centre, QPAC and South Bank 11 Busway Upgrade including Melbourne St to Adelaide St 22 The Edge,Cultural Auditorium
2 Griffith University Conservatorium 12 Southbank Tafe-PPP 23 Stormwater Harvesting and Reuse Centre Southbank
3 Brisbane State High Improvements 13 Upgrade water play park-Southbank 24 Southbank Butterfly House development
4 Convention and Exhibition Centre 14 Redevelopment of Southbank Southern Restaurant Precinct 25 ABC Headquarters
5 Goodwill Bridge 15 Glenelg/Grey St intersection upgrade 26 Collins Place-Southbank Transit Site Development
6 Go Between Bridge 16 The Wheel of Brisbane, Southbank 27 Southbank Corporation Marina(69 Berth) and associated works
7 South Bank Entry Upgrade 17 BCEC Extension 28 City Cat terminal upgrade
8 South East Busway including Cultural Centre 18 Melbourne,Grey,Merivale and Cordelia St upgrades 29 Arts precinct extension
and South Bank Stations and Tunneling works 19 Musgrave,Davies and Kurilpa Point Park upgrades 30 QPAC upgrades
9 Kurilpa Bridge 20 South Brisbane Train Station upgrade
16 27 5
9 22 23 24
10 1 29 30 7 13
19 1 1 1 25
18 2 26
17 15
8 14
20
4
18 11 12
6 21
18 19
3
19
© urbis.com.au
Urbis Outlook
A RESIDENTIAL MARKET AND ECONOMIC CONTEXT ON SOUTH BRISBANE
7
INNER SOUTH COMMERCIAL MARKET
Inner south registered the lowest vacancy rate in inner Brisbane
The Brisbane Fringe office market has experienced strong tenant demand in recent times
with firms now searching the fringe market for new office space.
Growth in the Inner South is dramatically Growth Rates of Total Office Stock
higher than surrounding market INNER SOUTH, BRISBANE CBD, SPRING HILL AND MILTON
The Inner South office market includes the suburbs of South
Brisbane, West End, Woolloongabba, Kangaroo Point, East
Brisbane and Greenslopes with the majority of office space
in South Brisbane. The Inner South market has experienced
considerable growth in the total office stock when compared to
the Brisbane CBD and surrounding Brisbane Fringe markets. The
Inner South recorded an annual average growth from 2004 to 2011
of 12 per cent, equating to a growth of total office stock of almost
18,000 sqm per year over the period.
Inner South vacancy rates consistently 1. Brisbane Fringe Inner South Market Includes the Suburbs of South Brisbane, West End, Woolloongabba,
lower than other Brisbane fringe markets Kangaroo Point, East Brisbane and Greenslopes
• Prepared by Urbis and Sourced from Property Council of Australia
Despite the influx of stock into the Inner South fringe market the
vacancy factor has remained beneath the Brisbane CBD and other
Brisbane Fringe markets. The total vacancy rate was 7.2 per cent Vacancy Rates of Brisbane CBD and Fringe Sublocales
for the half year ending July 2011, equal to vacancy rate recorded JUNE QUARTER 2011
for the same period 2010. The vacancy factor was less than the
7.4 per cent recorded in the Brisbane CBD for the same period
and considerably less than the vacancy rate for the surrounding
Brisbane fringe sublocales. This illustrates strong demand for
new office stock in the Inner South Market and that new stock is
received positively by firms.
Inner South vacancy rate outperform
Australian CBD’s
The Brisbane Inner South total vacancy factor was 7.2 per cent
for the half year ending June 2011, lower than the majority of
Australian CBD office markets. In addition the direct vacancy 1. Brisbane Fringe office market includes Inner South. Milton, Spring Hill, Urban Renewal and Toowong
• Prepared by Urbis and Sourced from Property Council of Australia
factor over the same period for the Inner South market was 5.1 per
cent, considerably less than all the major Australian CBDs. The
Vacancy Rates and Square Metres
direct vacancy and total vacancy factors in the Inner South market
INNER SOUTH AND AUSTRALIAN CBD OFFICE MARKET
demonstrate the limited availability of stock and the desirability of
the location. Direct Vacancy Total Vacancy
Factor (%) Factor (%)
The Inner South has been able to keep vacancies at a lower level
due major pre-commitments on future stock, including the ABC Brisbane Inner South 5.1% 7.2%
and Suncorp in South Brisbane. The Inner South fringe market Sydney CBD 8.4% 9.3%
contains a large proportion of new stock much of which is Grade
A, which has experienced tight vacancy rates over the past six Melbourne CBD 5.2% 5.8%
months. The limited supply of Grade A stock has driven demand Canberra CBD 11.0% 13.3%
and rental prices have increased accordingly. a
Brisbane CBD 6.6% 7.4%
Perth CBD 6.8% 7.8%
Total Australian CBD 7.4% 8.4%
• Prepared by Urbis and Sourced from Property Council of Australia
© urbis.com.au
Urbis Outlook
A RESIDENTIAL MARKET AND ECONOMIC CONTEXT ON SOUTH BRISBANE
JAN 2012 8
South Brisbane COMMERCIAL MARKET
300,000sqm of commerical office space
South Brisbane has developed into one To clarify, the next section will examine the South Brisbane commercial
market in detail. Within South Brisbane, there is over 300,000 square
of the largest commercial precincts in metres (sqm) of commercial office space, equating to enough floor
space for 30,000 white collar workers. The construction of a number of
South East Queensland with a number of large commercial buildings in South Brisbane coupled with the suburbs
close proximity to the CBD has seen it as an ideal location for many
multinational companies relocated into the firms. These firms have been concentrated around the key commercial
commercial office space in South Brisbane. precincts of Melbourne Street, Grey Street and Montague Road. A
number of key tenants are illustrated in the table of below.
South Brisbane Commercial Office Market
Tenant industry New Address New Suburb Area Leased (m2)
Suncorp Insurance and Banking Cnr Grey and Vulture Streets South Brisbane 33,600
Ausenco Property and Business Services 144 Montague Road South Brisbane 14,216
Sinclair Knight Merz Property and Business Services Cnr Melbourne Street & Merivale Street South Brisbane 12,000
Australian Broadcasting Company Communication Services Cnr Grey & Russell Streets South Brisbane 10,000
Kellogg Brown & Root Property and Business Services 199 Grey Street South Brisbane 8,255
Roche Mining Mining 100 Melbourne Street South Brisbane 6,600
Colorado Retail Trade 100 Melbourne Street South Brisbane 5,800
Origin Energy Electricity, Gas and Water Supply 144 Montague Road South Brisbane 5,666
Theiss Property and Business Services 10 Browning Street South Brisbane 3,614
Rivercity Motorway Construction 140 Melbourne Street South Brisbane 3,509
Macmahon Holdings Mining Cnr Melbourne Street & Merivale Street South Brisbane 3,494
Abigroup Contractors Construction Stanley Street South Brisbane 3,200
MWH Property and Business Services 35 Boundary Street South Brisbane 2,800
Queensland Health Government Administration & Defence 100 Melbourne Street South Brisbane 2,700
Macarthur Coal Mining 100 Melbourne Street South Brisbane 1,800
Sourced from Urbis and prepared by Urbis
SOUTH BRISBANE Past 4 Yrs
COMMERCIAL OFFICE
CONSUMPTION - PAST 4 YEARS
1 Ausenco (Engineering) - 9,000m2
2 Origin Energy (Supply) - 5,666m2
3 MWH Global (Engineering) - 2,800m2
4 South Central (Various) - 3,208m2
5 Centrelink (Community) - 3,600m2
6 Stockland (Property) - 6,204m2
7 Theiss (Engingeering) - 3,614m2
8 Roche Mining (Mining) - 6,660m2
9 Colorado (Retail Trade) - 5,800m2
10 QLD Health (Government) - 2,700m2
11 Macarthur Coal (Mining) - 1,800m2
12 AXA Australia (Finance & Incusrace) - 1,400m2 17
13 Downer EDI (Mining) - 1,386m2 18
14 Leighton Contractors ( Construction) - 1,000m2
15 Sinclair Knight Merz (Engineering/Mining) - 12,000m2
4 5 6 8 9 10
16 Macmahon Holdings (Mining) - 3,494m2 15 16
17 ABC (Communications Services) - 10,000m2
18 Kellogg Brown & Root (Engineering) - 8,255m2 11 12 13
3 14
1 2
7
© urbis.com.auUrbis Outlook
A RESIDENTIAL MARKET AND ECONOMIC CONTEXT ON SOUTH BRISBANE
9
SOUTH BRISBANE’S CULTURAL, EDUCATIONAL & RETAIL PRECINCTS
Key precincts within walking distance to CBD
South Brisbane is located in close proximity to key educational, retail and cultural nodes.
The suburb’s location and amenities is the principal driver for its high residential and
commercial demand. South Brisbane is Located in Close Proximity to Key
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ertainment Public Transport
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© urbis.com.auUrbis Outlook
A RESIDENTIAL MARKET AND ECONOMIC CONTEXT ON SOUTH BRISBANE
JAN 2012 10
SOUTH BRISBANE’S EDUCATIONAL INSTITUTIONS
80,000 students equals a strong rental market
South Brisbane is ideally located in close proximity to the majority of South East
Queensland’s educational providers.
South Brisbane is one of South East Queensland largest educational
hubs. There are currently 12 educational institutes within and surrounding Key infrastructure upgrades to education
South Brisbane, illustrated below. The South Brisbane educational hub A number of recent initiatives have been undertaken by private and
caters for in excess of 80,000 students. public investors to provide world class education facilities and to
• Queensland University of Technology (QUT) – 40,000 students improve the quality of amenities for the large student population in
• Southbank Institute of Technology – 30,000 students South Brisbane.
• Griffith University – 3,373 students • $40 million development of the Goodwill Bridge has provided
direct access from South Brisbane to the Queensland University
• Central Queensland University – 5,000 students
of Technology (QUT).
• $37 million development of Griffith University Conservatorium
• $325 million redevelopment of South Bank Institute of Technology
Education and Training precinct.
• Replacement of the QAS training facilities
• Recent upgrades to South Brisbane’s public transport including;
the South East Busway, refurbishment of the South Brisbane train
station and improvement of pedestrian and cycle paths.
SOUTH BRISBANE
STUDENTS
1 WITHIN 1.5km
80,000+
2
3
14 Queensland University of Technology - 40,000
25 Southbank Institute of Technology - 30,000
36 Griffith University - 3,373
47 CQ University - 5,000 11 12
58 Sarina Russo 5
69 EF International Language School
7 A&NZ College of Anaesthetics
10
4
8 New England College of Technology
11 9 10 1
9 Holmes College
12
10 Queensland College of English
11 Brisbane Commercial
12 Viva College 3
3
2
6
8
7
© urbis.com.auUrbis Outlook
A RESIDENTIAL MARKET AND ECONOMIC CONTEXT ON SOUTH BRISBANE
11
South Brisbane’s Retail and Cultural District
The cultural and retail hubs of South East Queensland
275 Bars, Restaurants and Cafes 53 Fashion Boutiques The centre encompasses three halls catering for events from 400 to
157 Other Specialty Stores 8,000 delegates. The South Bank Corporation and its partners are aiming
to continue the transformation of Grey Street into one of Australia’s most
distinctive boulevards.
The South Brisbane Retail and Cultural precincts encompass the
Queensland Cultural Centre, Little Stanley Street, Grey Street and the Situated near the end of Grey Street is the Queensland Cultural Precinct
South Bank Parklands. and Kurilpa Park. The Cultural Centre is home to:
Little Stanley Street is home to a number of award winning restaurants • Gallery of Modern Art (GoMA): Is the nation’s most visited art gallery
and bars as well as boutique retail stores from renowned international complex with more than 1.8 million people visiting the gallery in 2010.
and local designers. Little Stanley Street is adjacent to the South Bank GoMA also hosted four of the five most popular exhibitions in Australia
Parklands, a 17 hectare urban oasis nestled on the Brisbane River. in 2010.
South Banks offers retail and dining options integrated with rainforest • Queensland Art Gallery: Is considered Queensland premier visual arts
walks, picnic areas and a picturesque riverfront promenade. institution and one of the leading art museums in Australia.
• State Library of Queensland
Grey Street forms the heart of Brisbane’s cultural hub. In addition to
the street being fully occupied with restaurants and bars, the South • Queensland Performing Arts Centre: Is home to four of Queensland
Bank Cinemas and Brisbane Convention and Exhibition Centre are all leading performance companies including the Queensland Ballet and
located on Grey Street. The Brisbane Convention and Exhibition Centre Opera Queensland.
is officially ranked among the top three convention centres in the world. • Queensland Theatre Company
SOUTH BRISBANE
RETAIL
275 Bars, Restaurants & Cafes
53 Fashion Boutiques
157 Other Specialty Stores
2 Supermarkets
Queen Street Mall
South Bank Retail Precinct
South Brisbane
Retail Precinct
Retail
Melbourne St
West End Retail precinct
Coles
Supermarket
© urbis.com.auUrbis Outlook
A RESIDENTIAL MARKET AND ECONOMIC CONTEXT ON SOUTH BRISBANE
JAN 2012 12
Rental Market Insights
South Brisbane – apartment rental market
South Brisbane on market rental premium The South Brisbane rental market is undersupplied with the number
of people wanting to reside in the suburb substantially outweighing
the available product. The demand for South Brisbane coupled with
On The Market Rental Prices this limited supply has enabled South Brisbane rental prices to trade
at a premium over surrounding suburbs.
ONE BEDROOM AND TWO BEDROOM APARTMENTS
This analysis looks at one and two bedroom apartments within
South Brisbane that are near new or newly developed. To provide
accurate figures for comparable apartment product in other suburbs
the apartment’s location, size (square metre), aspect and age were
analysed and benchmarked.
The average weekly rental price generated by one bedroom
apartments in South Brisbane is $504 per week, considerably higher
than the average weekly rental of similar product in the neighbouring
suburb of West End. One bedroom apartments in West End are
currently achieving an average weekly rent of $422, 19 per cent less
than the average weekly rent in South Brisbane. This equates to
an average rental premium of $4,264 per annum for one bedroom
apartments if it was located within South Brisbane.
One bedroom apartments in Fortitude Valley and Bowen Hills
• The sample of on market rental prices was calculated using standard properties and removing properties which were
considered premium. Premium properties could be removed on the basis of aspect, square metres and amenities.
currently register an average weekly rental income of $360, 40 per
• Prepared by Urbis and Sourced from Realestate.com.au
cent less than the average one bedroom apartment asking rent
achieved in South Brisbane. The rental premium in South Brisbane
over Fortitude Valley and Bowen Hills equates to almost $7,500 more
rent over a period of one year. The rental premium for one bedroom
One and two bedroom apartment rental premium apartments in South Brisbane when compared to a similar product
in Hamilton is 41 per cent. This represents a similar income sacrifice
of $7,500 if an investor was to purchase an average one bedroom
apartment in Hamilton instead of South Brisbane.
RENTAL PREMIUM OVER WEST END, FORTITUDE VALLEY / BOWEN HILLS
AND HAMILTON for one and two bedroom apartments
Currently two bedroom apartments in South Brisbane generate
an average weekly rental return of $670 for a near new or new
apartment. When compared to similar two bedroom apartments in
South Brisbane Rental Premiums the neighbouring suburb of West End, South Brisbane achieves a
rental premium of $176 per week or 36 per cent.
1-Bd 2-Bd
South Brisbane $504 $670 Similar to one bedroom apartments, the demand for two
bedroom apartments in South Brisbane drive the suburb to
West End $422 $494 achieve a rental premium over comparable two bedroom
Fortitude Valley / Bowen Hills $360 $449 apartments in Fortitude Valley and Bowen Hills. The difference
in asking rents equates to a rental premium of 49 per cent or an
Hamilton $357 $494 average $221 more per week which equates $11,492 per annum.
South Brisbane Premium Over In recent years 88,997 sqm of office space has been added to
South Brisbane. This increase in space has enabled a potential
West End 19% 36%
new workforce of 8,900 white collar workers to work in the
Fortitude Valley / Bowen Hills 40% 49% immediate South Brisbane area. South Brisbane’s reputation
as a premium business distress was recognized with Suncorp
Hamilton 41% 36%
recently announcing that it will move 3,000 new staff in the yet-
to-be constructed Southpoint Precinct on the corner of Grey and
• The sample of on market rental prices was calculated using standard properties and removing properties which were Vulture Street in South Brisbane. This will bring the total South
considered premium. Premium properties could be removed on the basis of aspect, square metres and amenities. Brisbane Office Market to over 300,000 sqm of office space,
• Prepared by Urbis and Sourced from Realestate.com.au which will equate to approximately 30,000 workers (assuming
one person per 10 metres of office space.
© urbis.com.auUrbis Outlook
A RESIDENTIAL MARKET AND ECONOMIC CONTEXT ON SOUTH BRISBANE
JAN 2012 13
Rental Market Insights
The recent investment in South Brisbane equates to over 300,000 square metres of office space
and a potential rental catchment for South Brisbane of over 30,000 white collar workers.
This commercial development has not been shadowed by residential Significant existing infrastructure includes Victoria Bridge, which directly
development, with a limited supply of new residential buildings being links South Brisbane to the CDB at the Queen Street Mall, and Goodwill
developed in South Brisbane in the last four years. Therefore, in South Bridge which enables direct access to QUT. In addition, recent upgrades
Brisbane demand for dwellings drastically outweighs supply, increasingly to public transport including; upgrades to the busway at Melbourne
leading towards continued and steady increases to the weekly rental and Adelaide Street and the South East busway have provided South
rate. Brisbane with new and efficient public transport.
The higher rental premium generated in South Brisbane for one and Alongside infrastructure upgrades, South Brisbane can also be
two bedroom apartments can be attributed the suburbs close proximity considered one of Brisbane major cultural and boutique retail hubs,
to four major educational facilities, Griffith University, QUT, South Bank with a large proportion of both public and private investment being
Institute of Technology and CQ University. These four major educational concentrated into the suburb. This includes redevelopment of Southbank
providers have a current combined student population of approximately Southern Restaurant Precinct and the newly developed Queensland
80,000 students. In additional to the major institutions a number of Cultural Centre. The Gallery of Modern Art (GOMA), which forms part of
Private Educational Institutions are located in close proximity to South the Cultural Centre, was the most attended art gallery in Australia with
Brisbane drawing further students into the suburb. This has driven the over 1.8 million people visiting during 2010. In addition, the ABC radio
demand for the apartment market within South Brisbane as a large and television facilities along with the Queensland Symphony Orchestra
number of students are seeking rental accommodation within walking will re-locate to their new site on the corner of Grey and Russel Street,
distance to these large educational facilities. further enhancing the cultural reputation of South Brisbane.
The rental premium is also driven by the high desirability of South
Brisbane with residents willing to pay extra for the suburbs proximity to
the CBD, employment amenity and existing infrastructure. GRANGE
ALDERLEY LUTWYCHE
ENOGGERA
ASCOT
ALBION
NEWMARKET WILSTON WINDSOR
Hamilton
EAGLE FARM
ASHGROVE 5km
THE GAP Hamilton
One Bedroom Current on Market Rent: $357 per week
HERSTON BULIMBA Current on Market Rent: $494 per week
Two Bedroom
Fortitude Valley / South Brisbane One Bedroom Rental Premium: 41%
Fortitude Valley/Bowen Hills NEWSTEAD South Brisbane Two Bedroom Rental Premium: 36% MURARRIE
RED HILL Bowen Hills
One Bedroom Current on Market Rent: $360 per week
Two Bedroom Current on Market Rent: $449 per week
South Brisbane One Bedroom Rental Premium: 40% BALMORAL
South Brisbane Two Bedroom Rental Premium: 49%
BARDON SPRING HILL 2.5km
PADDINGTON
MORNINGSIDE
BRISBANE CBD NEW FARM
1km
MILTON
!
( CANNON HILL
MOUNT COOT-THA
TOOWONG South
Brisbane
West End
One Bedroom Current on Market Rent: $422 per week SEVEN HILLS
Two Bedroom Current on Market Rent: $494 per week West End
South Brisbane One Bedroom Rental Premium: 19% NORMAN PARK
South Brisbane Two Bedroom Rental Premium: 36%
CARINA
South Brisbane
One Bedroom Current on Market Rent: $504 per week
Two Bedroom Current on Market Rent: $670 per week
TARINGA
CAMP HILL
CHAPEL HILL
ST LUCIA
COORPAROO
INDOOROOPILLY
FAIRFIELD CARINDALE
GREENSLOPES
ANNERLEY CARINA HEIGHTS
CHELMER YERONGA
© 2011 PSMA Australia Ltd, Sensis Pty Ltd. Australia Bureau of Statistics. Produced by Urbis Pty Ltd ( November 2011 )
±
HOLLAND PARK
FIG TREE POCKET GRACEVILLE TARRAGINDI
Scale 1:40,000 when printed at A3
Legend 0 0.25 0.5 1 1.5 2
!
( Brisbane CBD
Kilometres
MARKET RENT COMPARISON
© urbis.com.au
BRISBANE, QUEENSLANDUrbis Outlook
A RESIDENTIAL MARKET AND ECONOMIC CONTEXT ON SOUTH BRISBANE
JAN 2012 14
Rental Market Insights
Inner and Metroplitan Brisbane - Vacancy Rates
Tightening of vacancy rates OESR - Quarterly Vacancy Rate - Sep 2009 Qtr - Sep 2011 Qtr
The vacancy rate for Inner Brisbane at the end of the
September 2011 Quarter was 2.7 per cent. This was lower
than the vacancy rate of 3.2 per cent for the Brisbane
Metropolitan Area over the same period. The vacancy rate
for inner city Brisbane apartment rentals between 2007 to
the current period on average achieved a vacancy rate of
2.7 per cent.
The vacancy rate within the inner Brisbane region has been tightening
since late 2009 due to the lack of residential development following the
global financial crises and the subsequent difficultly for developers in
gaining finance to deliver apartment projects within the inner city. With
limited supply and continued increasing demand, vacancy rates will
potentially continue to tighten in those inner city suburbs that are well
supported by infrastructure and amenity. • Prepared by Urbis and Sourced from OESR Quarterly Vacancy Data, June 2011
It is safe to assume that rental rates will continue to increase in the near
future, further driven by inner Brisbane’s ever increasing demand for rental
accommodation and sluggish development of dwelling supply.
© urbis.com.auUrbis Outlook
A RESIDENTIAL MARKET AND ECONOMIC CONTEXT ON SOUTH BRISBANE
15
Demographic Insights
South Brisbane’s demographics are driven by the suburb’s location to key amenities
Estimated Residential Population demographic analysis
SOUTH BRISBANE, CATCHMENT AREA AND INNER BRISBANE The catchment area for South Brisbane encompasses the residents of
South Brisbane, West End and Highgate Hill. It is utilised as a means
of comparing South Brisbane’s demographic to that of its surrounding
suburbs. The estimated residential population (ERP) in South Brisbane
increased by 0.6 per cent during the year ending 2010, consistent with
the growth experienced in the Catchment Area (1 per cent) and Inner
Brisbane (1 per cent) over the same period.
The estimated residential population in South Brisbane experienced
large fluctuations in the growth rate when compared to the Catchment
Area and Inner Brisbane. As a result of the limited supply of
residential dwellings, the population dramatically increases when new
developments enter the market, resulting in fluctuations in resident
population. The fluctuations in population illustrates that when new
residential product enters the market, a significant amount of pent
up demand is present. In addition, the low vacancy rate of the region
• Prepared by Urbis and Sourced from ABS Regional Population Growth, Australian 3218.0
suggests that rentals are tight and quickly absorbed when new product
enters the market.
Age Demographic
SOUTH BRISBANE, CATCHMENT AREA AND INNER BRISBANE
Age Demographic
The most prevalent age demographic in South Brisbane is residents 20
to 29 years of age, which equate to 34.1 per cent of the total population.
The most dominant demographic in South Brisbane are residents
between 20 to 24 years of age indicating a large student populace and
professional populace. The concentration of this age group is of no
surprise when considering the locations proximity to a number of key
educational facilities as well as employment nodes.
Furthermore this age group are more accepting of density development
and generally seek to be located in socially active and diverse hubs such
as South Brisbane. With student numbers predicted to increase over the
next five years, the demand for low maintenance dwellings in suburbs
such as South Brisbane will also continue.
• Prepared by Urbis and Sourced from ABS 3235.0 Population by Age and Sex 2010, Regions of Australia
Mean Taxable Income
Mean Taxable Income The mean taxable income for the catchment area for the annual period
ending 2009 was calculated at $61,490, equating to an annual growth
CATCHMENT AREA AND INNER BRISBANE
of 3.1 per cent. The mean taxable income was slightly lower than
the $67,483 recorded within the Inner Brisbane region, which can be
attributed to the high proportion of individuals aged 20 to 29 years of
age. This high proportion is reflective of:
• The large student population residing in South Brisbane because
of the suburb’s location in close vicinity to a number of large scale
educational facilities. These students are presumably working on a
casual or part-time basis while they are studying.
• The high proportion of individuals aged 25 to 29 years of age is
reflective of young professionals residing in the catchment that
are attracted to the locations proximity to employment nodes and
emerging office district.
• Prepared by Urbis and Sourced from ATO Mean Taxable Income by Postcode
© urbis.com.auUrbis Outlook
A RESIDENTIAL MARKET AND ECONOMIC CONTEXT ON SOUTH BRISBANE
JAN 2012 16
Shifting Demographic
Understanding the demand and drivers of Australia’s two largest markets will be the
primary driver in dwelling demand in the next five years as both Gen Y and Baby Boomers
move into new phases of their dwelling accommodation life cycle.
Dumbbell Effect – Generation Y and Baby Boomers
Australian Generations – The Breakdown
2008 2011 2015 2021 2008 2008 Pop 2011 % of 2021 % of
Generation Born Age Age Age Age % of Nation (Approx. $ Mill) Nation (Projection) Nation (Projection)
The Great Generation 1925 -1945 62+ 65+ 69+ 75+ 16% 3.4 14.00% 7.5%
Baby Boomers 1946 - 1964 43 - 61 46 - 64 50 - 68 56-74 25% 5.3 23.75% 19.5%
Gen X 1965 - 1980 27 - 42 30 - 45 34 - 49 40 - 55 23% 4.8 22.25% 20.1%
Gen Y (Mellenials) 1981 - 1999 8 -26 11 - 29 15 - 33 21 - 39 26% 5.5 26.1% 26.2%
Gen Z 2000 and After 0-7 3 - 10 7 - 14 13 - 20 10% 2.1 10.2% 10.8%
Both are generations which are prominent within the site’s catchment and typical retirement age of 65 and want to embrace the ‘town-centre’ idea of
greater focus will be needed to attract older Generation Y (Gen Y) who walkable urban areas. For those in the latter stages of the boomers, ease
are now moving into young family dynamics and are more accustomed to of access to medical and healthcare facilities is of high importance. As
denser communities yet require more affordable product due to the lack of Brisbane grows, providing ‘liveable’ dwellings will be key.
net worth in comparison to Baby Boomers.
A key external factor for all demographic groups will be the rising cost of
Gen Y and Baby Boomers have both matching and different wants and living. Energy costs continue to rise, with a rise of over 13% experienced
needs, which will simultaneously drive demand in residential projects. in Queensland over the 2010-11 financial year, and a rise of nearly 7%
Nonetheless, Gen Y and Baby Boomers, will be more attracted to expected for the 2011-12 financial year. Fuel prices continue to rise, and
product that is centred on walkable urban environments, which the Government’s stance on Carbon Taxation will flow through to add an
are green-orientated (sustainable) and are well serviced by public extra cost to our bottom line. These costs add up - we are already seeing
transport, employment nodes, and centres of activity or leisure, which households moving to smaller, newer, more sustainable dwellings, with
provide destination appeal. proximity to public transport.
Gen Y will be defined by a growing income earning potential, combined The focus therefore for investors and developers is to be able to
with a growing household size, yet the majority believe that inner-city capitalise on the opportunities these shifting trends presents. Developing
family living is beginning to be the norm. A focus will be on a dwelling and investing will ultimately be judged around key components such
in an environment where they can live, work and recreate – and higher as a changing consumer preference based around community,
density will not be opposed. Baby Boomers, similarly focused on neighbourhood and function; the positives of urbanisation and work/life
lifestyle, have increased equity yet will want more manageable and low balance; increasing sustainability and ‘green’ technology integration; and
maintenance spaces to live in. They will be likely to work longer than they locations and product which counter the rising cost of living.
Dumbbell Effect – Generation Y and Baby Boomers
Housing Demand Shifts for the Australian Generations
Single and
Staying at Home Room-mate Rent as Couple Young Family Mature Family Empty Nester Retiree
Year with parents Rental / 1st Home Own Own Downsize Own Senior Housing
Gen Y Gen Y Gen X Gen X Baby Boomer Baby Boomer Baby Boomer
2008
Gen Z The Great Gen
Gen Y Gen Y Gen Y Gen X Baby Boomer Baby Boomer Baby Boomer
2010 Gen X The Great Gen
Gen Z Gen Y
Gen Y Gen Y Gen Y Gen Y Gen X Baby Boomer Baby Boomer
2015 Gen X The Great Gen
Gen Z
Gen Z Gen Y Gen Y Gen Y Gen X Baby Boomer Baby Boomer
2020
Gen Y Gen X
© urbis.com.auUrbis Outlook
A RESIDENTIAL MARKET AND ECONOMIC CONTEXT ON SOUTH BRISBANE
17
Market Insights
and Outlook 2016
PEAK
“There is no security,
there is only opportunity” 2007
2013
RECOVERY
Global economic uncertainty remains
turbulent, but Australia and Queensland TROUGH 2012
NORMAL
in particular hold an enviable position 2008
2011
2009 2010
of stable economic fundamentals and 2004
a booming resource sector. This robust
climate portrays Brisbane property as
an exceptionally secure investment
option on a worldwide scale. It is certainly not all doom and gloom for Brisbane’s property
We are now entering the final quarter of market, in fact, it is possibly one of the most opportunistic
the calendar year, and it is reasonable
to conclude that 2011 has been a tough markets Brisbane home buyers and investors have
period for the Queensland property market
and the Australian economy in general.
experienced in many years.
Despite a booming resource sector,
confidence across all other major industry across the market, the fundamentals are still
sectors has softened significantly on the strong and that the market is poised for another
back of substantial international economic period of solid growth in coming years.
turbulence. A combination of natural disasters,
poor Government policies and monetary Population growth for Queensland and
management have done little to assure or Australia remains above or equal to the five
entice Australia’s potential home buyers and year average. This population growth is driven
investors to re-enter the property market. by a number of key areas, such as employment
opportunities, affordability of dwellings and
Despite media driven fear throughout the the Queensland lifestyle. A steady growth in
market, taking a long-term look at Brisbane’s population combined with smart economic
property market it is reasonable to predict strategies develops a strong economy, and our
that we have now reached the bottom of our current resources boom will be key in driving
property cycle. Global economic conditions the calls for labour.
remain turbulent, but Australia and Queensland
in particular hold an enviable position of stable The growing population will also be a changing
economic fundamentals and a booming demographic, with particular movement from It is these fundamentals, combined with one
resource sector. This robust climate portrays the largest demographic groups, the Baby further key variable, that should have all wise
Brisbane property as an exceptionally secure Boomers and the Gen Y’s. The wants and needs investors jumping for joy. That key variable is
investment option on a worldwide scale. of these two groups will be widely different, with value. Median house and apartment prices in
Baby Boomers looking to downsize, and a Gen many areas are the lowest they have been in
There is currently a ‘stand-off’ situation Y demographic moving into increased earning years. In addition, median rents have consistently
being experienced with investors and owner capacity, looking at locality to employment, risen across all residential classes across
occupiers sitting on their hands, waiting with lifestyle and investments. Brisbane over the past five years. Affordable
caution for some sign that things are going to prices, rental demand, and all in combination with
improve, presumably resulting in ‘herd-like’ Unemployment is relatively stable, however
interest rates that are still below the levels seen in
purchasing and providing the perception of the long term forecast suggests Brisbane can
the 90’s and early 2000’s.
short-term security. It will be the wise investor expect to provide a further 360,000 jobs by 2031
who reigns supreme however, as they will within the ‘Golden Employment Triangle’ of the The wise purchaser will see that the opportunity
understand that property, like many forms of Brisbane CBD, the Brisbane Airport and the Port to buy is now, there will be no magical indication
investment, must be viewed on a long term of Brisbane. In the short term, our commodities because the signs everyone is waiting for are the
basis - requiring planning, knowledge of future boom will see a tightening of labour available, hard facts right in front of us – buy a well-priced
markets and patience. Wise investors will and with Brisbane being the largest capital city in product, designed with the shifting demographic
understand that despite the media-driven fear proximity to much of this activity, the lowering of needs in mind, within an urban community well
unemployment is expected. serviced by amenity and infrastructure, and the
future of your investment looks bright indeed.
© urbis.com.auUrbis Outlook
A RESIDENTIAL MARKET AND ECONOMIC CONTEXT ON SOUTH BRISBANE
JAN 2012 18
Brisbane LGA RESIDENTIAL MARKET OVERVIEW
and long term strategy that is real estate investment.” BRISBANE LGA – HOUSE MARKET INSIGHT
Positive signs in the september quarter The Brisbane Local Government Area (LGA) registered a
median house price of $506,000, based on 2,771 settled
transactions at the end of the September 2011 quarter. The
Brisbane LGA House Market median house price declined by 6.3 per cent over the year
BRISBANE LGA SALES AND MEDIAN HOUSE PRICE and can be attributed to a number of key factors including;
TIME SERIES SEP 1980 TOBrisbane
SEP 2011LGA - House Sales Cycle economic uncertainty and the subsequent inability of
7,000 $600,000 buyers to gain finance, lack of interest and commitment of
Num Sold QTRLY purchasers in the higher price points and the lingering effects
Median Price QTRLY
of the January floods.
6,000
$500,000
However, settled transactions increased over the September
5,000 2011 quarter, swelling by 55 per cent or 979 settlements.
$400,000
The increase in the number of settled transactions over the
Number of Transactions
4,000 Median Sale Price
quarter is a positive sign for the Brisbane LGA housing market
$300,000
and coupled with recent interest rate cuts, activity is set to
increase moving into 2012.
3,000
$200,000
The Brisbane LGA sales cycle graph identifies the long-term
2,000 investment that is property as an asset class and reinforces
the potential capital growth that can be achieved despite
1,000
$100,000 short term fluctuations. Despite the decline in median house
sale price since peaking back in mid-2010, the Brisbane
LGA’s median house price over the past five years has
0 $0
registered an increase of 5.5 per cent per annum and over
Sep-80
Sep-81
Sep-82
Sep-83
Sep-84
Sep-85
Sep-86
Sep-87
Sep-88
Sep-89
Sep-90
Sep-91
Sep-92
Sep-93
Sep-94
Sep-95
Sep-96
Sep-97
Sep-98
Sep-99
Sep-00
Sep-01
Sep-02
Sep-03
Sep-04
Sep-05
Sep-06
Sep-07
Sep-08
Sep-09
Sep-10
Sep-11
the past 10 years has increased by 9.7 per cent per annum
Period (Quarterly)
ending September 2011. The decline in median house prices
• Prepared by Urbis and Sourced from RPData within the Brisbane LGA coupled with the current market
outlook indicates that prices may have finally hit bottom. This
can be perceived as one of the best opportunities to enter the
property market while house prices remain competitive.
Opportunities present in the apartment market BRISBANE LGA – APARTMENT MARKET INSIGHT
The Brisbane LGA median apartment price at the end of the
Brisbane LGA Apartment Market September 2011 quarter was recorded at $388,000, based
BRISBANE LGA SALES AND MEDIAN UNIT PRICE on 1,521 settled transactions. Apartments in Brisbane have
TIME SERIES SEP 1980 TO SEP 2011 performed consistently better over the period than the house
Brisbane LGA - Unit Sales Cycle market, declining by only 2 per cent since the June 2011
5,000
Num Sold QTRLY
$450,000 quarter. The buoyancy and subsequent price softening over
Median Price QTRLY the quarter may be attributed to more affordable product
4,500 $400,000
being purchased and a low supply of new product entering the
4,000
$350,000
market, limiting the availability of apartment stock in desired
locations within the Brisbane LGA.
3,500
$300,000
The decline in median apartment prices across the Brisbane
Number of Transactions
3,000
LGA can be a seen as positive for those wanting to enter
Median Sale Price
$250,000
2,500 the property market for the first time as well as investors.
$200,000
Furthermore, recent interest rate cuts may soon see
2,000
Brisbane’s affordable apartment product become once again
$150,000
1,500 in high demand. This can be attributed to the opportunities
$100,000
surrounding Brisbane’s continued low vacancy in rental
1,000
dwellings, in particular within the inner city, attracting
500 $50,000 investors back into the market. An increase in the demand
for apartments over the short term will certainly see the rapid
0 $0
absorption of the limited supply of competitively priced
Sep-80
Sep-81
Sep-82
Sep-83
Sep-84
Sep-85
Sep-86
Sep-87
Sep-88
Sep-89
Sep-90
Sep-91
Sep-92
Sep-93
Sep-94
Sep-95
Sep-96
Sep-97
Sep-98
Sep-99
Sep-00
Sep-01
Sep-02
Sep-03
Sep-04
Sep-05
Sep-06
Sep-07
Sep-08
Sep-09
Sep-10
Sep-11
apartments within the market as supply remains constrained for
Prepared by Urbis Source: RPData Period (Quarterly)
developers to release new product.
• Prepared by Urbis and Sourced from RPData
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